HMIL's Statement on the tax evasion notice issued by the DRI

Hyundai Motor India Limited (HMIL), the largest passenger car exporter from India, abides by all the statutory norms laid down under the law.HMIL totally denies the allegations of resorting to mis-declaration of the value of components imported by it for the manufacture of passenger cars or having suppressed information of the same.

The show cause notice served on HMIL by the Directorate of Revenue Intelligence will be challenged by HMIL under the due process of law in the appropriate forum.HMIL imports all the components based on transaction value and the relevant duty has been paid to the appropriate authorities with full documentation. Therefore any allegation that HMIL is resorting to mis- declaration is false, baseless and unfounded.

HMIL has filed every single invoice, agreement(s) and bill of entry with the customs department as per prescribed procedures and there is no scope for suppression of any kind. The disputed value of Rs 266 crores, represents 2 % of the total import value of approximately Rs 14,000 crores in the last five years.

HMIL avails the ‘Accredited Client Programme Facility’ from the Government of India which is a status reserved for the largest exporters from India.HMIL, which established operations in 1998, is the largest passenger car  exporter from India and currently exports to over 140 countries having earned over $ 8.5 billion in export revenue over the past ten years. HMIL has paid over Rs 26, 800 crores in central and state taxes since it started operations in India.

The company in 2008-09 was awarded the ‘Niryat Shree’ Gold and Silver Trophies for  2008-09 by the Federation of Indian Export Organisation for being one of the highest foreign exchange earners in India. HMIL has also been awarded the ‘All India Award for Export Excellence’ 2008-09, by the Engineering Export Promotion Council, in recognition of export contributions to India.